This building was constructed in 1900 by New Albany contractors S. Day & Sons, to house John Baer's dry goods and department store, established in 1871. After Baer's went out of business in 1931, W.T. Grant & Company occupied the space. Grant's remodeled and enlarged the store in 1941, and remained here until their new store was constructed at the southeast corner of Spring and Pearl streets in 1957.

After many years of standing vacant, the building underwent an extensive rehabilitation in the mid-2000s, earning awards from the New Albany Historic Preservation Commission and Indiana Landmarks for the work.